Lest you’re not aware, it has already been confirmed a long time ago that the Land Transport Authority (LTA) will be replacing the existing electronic road pricing (ERP) system with the next-generation (nexgen) ERP system that supports Global Navigation Satellite System (GNSS) technology.
For that to work, all vehicles would need to be installed with a new vehicle on-board unit (OBU).
As of now, we’re not sure how it’ll work or whether it’ll be more expensive than the current ERP. Moreover, motorists are wondering if it would also track our speed.
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Suffice to say, as a driver, I can say that I’m not looking forward to it, and this is actually good news…
…but the CEO of LTA didn’t seem to understand me well. Instead, he said, “We would like to seek motorists’ understanding as we work closely with our partners to resolve the production challenges brought on by COVID-19. Our priority is to ensure that the installation exercise proceeds smoothly. We will give ample notice to motorists and motor vehicle industry ahead of the installation exercise.”
Take your time, Mr CEO.
So, what’s new?
Satellite-Based ERP to be Installed in S’pore Vehicles From Mid-2023 Instead Due to Lack of Chips
The installation of OBUs was originally planned to start in end-2021, but it has now been delayed to the second half of 2023 instead.
This is because the supply of essential microchips, which is required for the OBUs, has been affected by the worsening global shortage of microchips, a situation that is also impacting many other industries.
In addition, according to LTA, the parts needed to build the OBU need to be sourced from different suppliers and a few have indicated that they have been unable to meet the required delivery schedules for critical components.
This shortage is expected to persist through 2022 and the recovery in microchip production is expected to be gradual, from end-2022 to mid-2023.
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LTA said that the first OBU will be installed free of charge for existing Singapore-registered vehicles, and they will monitor the impact of COVID-19 on the OBU installation timeline.
The current ERP system will continue to operate until the nexgen ERP is implemented.
About the nexgen ERP
The LTA awarded the contract for developing the nexgen ERP system to the consortium of NCS Pte Ltd & Mitsubishi Heavy Industries Asia Pacific Pte Ltd in 2016.
The nexgen ERP will replace the current physical gantry-based ERP system, which was introduced more than 20 years ago in 1998 and is increasingly more expensive to maintain.
Leveraging Global Navigation Satellite System, the new system doesn’t just have congestion charging, but it also improves traffic management and transport planning and provides value-added services for motorists, such as advance notifications on charging locations and real-time traffic information.
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Kind of like Google Maps. Or Waze.
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